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Hungary - Telecoms, IP Networks, Digital Media and Forecasts

Hungary - Telecoms, IP Networks, Digital Media and Forecasts

Popular protests force rejection of tax on internet traffic

Hungary’s telecom regulator has been effective in promoting competition, and has aligned interconnection and access tariffs with the EU average. As in many other markets in the region, the number of fixed-lines, as also fixed-line revenue, has been affected by the changing consumer use of such services and by the trend for fixed-to-mobile substitution. Fixed-line operators have thus looked to broadband internet access and broadband-based services to boost revenue. The economic crisis has also affected telecom revenue, exacerbated by the government’s recent telecom taxes. The attempt to impose a tax on internet data traffic was abandoned in November 2014 following civil demonstrations against it.

The dynamic mobile market is served by three mobile network operators and a growing number of MVNOs. Mobile penetration is relatively high, and though there are fewer opportunities for revenue growth through new subscriber additions, the MNOs have upgraded networks to capitalise on strong consumer demand for mobile data services. Thus future revenue growth is focused on mobile data while operators face stiffening competition and regulated tariff reductions.

Hungary enjoys relatively high internet penetration, with broadband representing the majority of internet connections. There is effective cross-platform competition. The market is led by cable, closely followed by DSL. The regulator has acted to promote competition via LLU. Competition and the demand for bandwidth are pushing the drive for higher speed platforms, and so have encouraged operators to invest in FttX and DOCSIS 3.0. Catering for the large internet user base are useful online services and applications, fostering the development of an internet society, a trend recognised and encouraged by the government through investment and policy.

The competitive digital TV market is continuing to evolve with new bundled service offerings and the ongoing transition to digital broadcasting. Digital TV is available via terrestrial TV, cable TV networks, satellite and IPTV platforms.

This report provides an overview of Hungary’s telecoms and IT market, highlighting regulatory developments, the major operators, fixed-line network infrastructure, and a variety of insightful statistics. It reviews the strong mobile market, covering the major players, voice and data services and the regulatory environment. It also assesses the broadband and digital TV markets, covering market developments and including data, statistics and scenario-based forecasts for fixed broadband penetration to 2020.

Key developments:

Mid Europa Partners to sell Invitel Holdings; government scraps proposed levy on internet traffic; Deutsche Telekom acquires GTS Central Europe; telcos report lower revenue into Q3 2014; new access regulations incorporate fibre and cable infrastructure sharing; National Media and Infocommunication Authority inaugurated to oversee telecoms sector; regulator auctions 450MHz spectrum; multi-spectrum auction in late 2014 boosts mobile broadband capabilities; T-Mobile trials LTE-A; M2M sector gaining traction; smartphones accounting for up to 70% of handset sales; RG Networks launches satellite broadband via Eutelsat; government expands e-payment systems; Maygar Telecom steps up e-health initiatives; Maygar Telekom stops selling cable TV services; DTTV available to 95% of population; UPC cable dominance following purchase of FiberNet assets, regulator market data to September 2014; telco’s financial and operating data for Q3 2014; recent market developments.

Companies and subsidiaries mentioned in this report include:

Magyar Telekom, Invitel, Antenna Hungaria, GTS-Datanet, Telenor Hungary, Vodafone Hungary, UPC Hungary, Hungarotel, FiberNet, Maygar Televizio, TV2.

Data in this report is the latest available at the time of preparation and may not be for the current year


  • EXECUTIVE SUMMARY
  • KEY STATISTICS
    • Table Country statistics - 2014 (e)
    • Table Telephone network statistics - 2014 (Sep)
    • Table Internet subscriber statistics - 2014 (e)
    • Table Mobile statistics - 2014 (Jun)
    • Table National telecommunications authority
  • TELECOMMUNICATIONS MARKET
    • ECONOMIC BACKGROUND
    • TELECOM TAX
    • PROPOSED INTERNET TAX
      • Table Maygar Telecom telecom tax contributions - 2010 - 2014
    • OVERVIEW OF HUNGARY'S TELECOM MARKET
  • REGULATORY ENVIRONMENT
    • BACKGROUND
      • Unified Telecommunications Act 2001
      • Electronic Communications Act 2003
      • EU Regulatory Framework
      • Revised NFR
    • REGULATORY AUTHORITY
      • Nemzeti Hírközlési Hatóság (NHH)
    • TELECOM SECTOR LIBERALISATION IN HUNGARY
      • Privatisation
      • Interconnect
      • Access
      • Number Portability (NP)
      • Carrier selection (CS) and carrier preselection (CPS)
  • FIXED NETWORK OPERATORS
    • MARKET OVERVIEW
      • Table Proportion of voice lines by technology - 2010 - 2014
      • Table VoIP and VoCATV lines in service - 2008 - 2014
      • Table Fixed-voice market share by operator - 2011 - 2014
    • MAGYAR TELEKOM
      • Table Magyar Telekom Group financial data - 2006 - 2014
      • Table Magyar Telekom domestic financial data - 2011 - 2014
      • Table Magyar Telekom subscribers by sector - 2011 - 2014
      • International expansion
    • INVITEL
      • Table Invitel financial data - 2009 - 2014
      • Table Invitel financial data by sector - 2010 - 2014
      • Table Invitel subscribers - 2010 - 2013
    • MONOR
    • GTS-DATANET
      • Table GTS Central Europe revenue - 2010; 2012 - 2013
    • ANTENNA HUNGÁRIA
  • TELECOMMUNICATIONS INFRASTRUCTURE
    • NATIONAL TELECOM NETWORK
      • Table Historic - Fixed lines in service and teledensity - 2000 - 2004
      • Table Fixed lines in service and teledensity - 2000 - 2014
      • Magyar Telekom
      • Alternative operators
    • INTERNATIONAL INFRASTRUCTURE
      • Table Total international internet bandwidth - 2000 - 2013
    • WHOLESALING OVERVIEW
  • INTERNET MARKET
    • HUNGARY'S EMERGING INTERNET SOCIETY
    • LEGISLATION
  • BROADBAND MARKET
    • OVERVIEW
      • Table Internet access revenue by platform - 2002 - 2012
      • Table Household internet and broadband penetration - 2005 - 2014
      • Table Proportion of internet accesses by platform - 2007 - 2014
    • FIXED BROADBAND STATISTICS
      • Table Historic - Internet users and penetration rates - 1999 - 2004
      • Table Internet users and penetration rates - 2005 - 2014
      • Table Fixed broadband subscribers and penetration rate - 2000 - 2015
      • Table Fixed broadband market share of subscribers by operator - 2011 - 2014
      • Table Fixed broadband lines above 30Mb/s, by platform - 2011 - 2014
    • CABLE MODEMS
      • Table Cable broadband subscribers - 2006 - 2015
      • Table Cable broadband subscribers via DOCSIS3.0 - 2012 - 2014
      • Table UPC cable broadband subscribers - 2003 - 2014
      • Table T-Home cable broadband subscribers - 2004 - 2014
    • ASYMMETRICAL DIGITAL SUBSCRIBER LINE (ADSL)
      • Table DSL broadband subscribers - 2007 - 2015
      • Table Magyar Telekom retail ADSL subscribers - 2004 - 2014
    • FIBRE-TO-THE-PREMISES (FTTP)
      • Table FttX broadband subscribers - 2010 - 2015
      • Table Magyar Telekom FttX subscribers - 2010 - 2014
    • WIRELESS BROADBAND
      • Table Wireless broadband subscribers - 2006 - 2014
      • WiFi
    • SATELLITE BROADBAND
    • MOBILE BROADBAND
      • Table Mobile broadband subscribers per operator - 2009 - 2014
      • Table Mobile data traffic by operator per operator - 2009 - 2014
  • DIGITAL MEDIA/DIGITAL ECONOMY
    • DIGITAL ECONOMY
      • E-government
      • E-health
      • E-education
      • E-Commerce
    • OVERVIEW OF DIGITAL MEDIA MARKET
      • Table TV market share by main operators - 2009 - 2014
      • Table TV market share by platform - 2009 - 2014
      • Table TV subscribers by reception - 2009 - 2014
      • Bundled services
        • Table Take-up of services by bundle - 2010 - 2012
        • Table Proportion of bundled take-up by provider - 2010 - 2012
      • Regulatory developments
      • Free-to-Air (FTA) TV
      • Digital TV (DTV)
        • Table Magyar Telekom IPTV subscribers - 2007 - 2014
        • Table Cable TV sector investment - 2002 - 2013
        • Table UPC - homes passed - 2003 - 2014
        • Table UPC - Subscribers by service type - 2003 - 2014
        • Table UPC financial data (historic) - 2006 - 2009
        • Table Magyar Telekom (T-Home) cable TV subscribers - 2004 - 2014
        • Table Satellite subscribers - 2009 - 2014
        • Table T-Home satellite TV subscribers - 2008 - 2014
        • Table DTTV (MinDig TV) subscribers - 2012 - 2014
  • MOBILE COMMUNICATIONS
    • OVERVIEW OF HUNGARY'S MOBILE MARKET
      • Mobile statistics
        • Table Historic - Mobile subscribers and penetration rate - 1998 - 2004
        • Table Mobile subscribers and penetration rate - 2005 - 2015
        • Table Mobile voice market share by SIM cards - 2006 - 2014
        • Table Smart phones in use - 2006 - 2014
    • REGULATORY ISSUES
      • GSM licences
        • Table 2G spectrum awards
      • 3G licence awards
      • Multi-spectrum auction results - 2014
        • Table Spectrum auction results - 2014
      • 900MHz spectrum
      • 26GHz spectrum
      • 450MHz spectrum
      • Mobile Termination Rates (MTRs)
      • Mobile Number Portability (MNP)
    • MOBILE TECHNOLOGIES
      • Digital
      • Third Generation mobile
    • MAJOR MOBILE OPERATORS
      • T-Mobile Hungary (MTel)
        • Table T-Mobile subscribers - 2003 - 2014
        • Table T-Mobile mobile broadband subscribers - 2008 - 2014
        • Table T-Mobile revenue - 2004 - 2014
        • Table T-Mobile ARPU - 2004 - 2014
      • Telenor Hungary
        • Table Telenor subscribers - 2004 - 2014
        • Table Telenor mobile financial data - 2006 - 2014
        • Table Telenor Monthly ARPU - 2006 - 2014
      • Vodafone Hungary
        • Table Vodafone subscribers - 2007 - 2014
      • MPVI Mobil
      • Mobile Virtual Network Operators (MVNOs)
    • MOBILE VOICE SERVICES
      • Prepaid cards
        • Table Ratio of prepaid to postpaid subscribers - 2007 - 2014
    • MOBILE DATA SERVICES
      • Short Message Service (SMS)/Multimedia Messaging Service (MMS)
        • Table Total SMS and MMS messages sent - 2002 - 2012
      • General Packet Radio Service (GPRS)
      • Push-to-talk (PTT)
      • Enhanced Data for GSM Evolution (EDGE)
      • High Speed Packet Access (HSPA)
      • Long-term Evolution (LTE)
      • Mobile TV
    • MOBILE CONTENT AND APPLICATIONS
      • T-Mobile Hungary
      • Vodafone Hungary
      • Telenor Hungary
      • M-commerce (micropayments)
    • MOBILE MARKETING
      • QR code readers
      • Vodafone 360
  • FORECASTS
    • FORECASTS - FIXED BROADBAND SUBSCRIBERS - 2010 - 2013; 2020
      • higher broadband subscriber growth
        • Table Forecast fixed broadband subscribers - higher growth scenario - 2010 - 2013; 2020
      • lower broadband subscriber growth
        • Table Forecast fixed broadband subscribers - lower growth scenario - 2010 - 2013; 2020

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